Paymentus Holdings, Inc. Reports Financial Results for the Quarter Ended September 30, 2025
Paymentus Holdings, Inc. Reports Financial Results for the Quarter Ended September 30, 2025
Paymentus Holdings, Inc. filed its quarterly report for the period ended September 30, 2025. The company reported total revenue of $X million, a decrease of Y% compared to the same period last year. Net income was $Z million, a decrease of W% compared to the same period last year. The company’s cash and cash equivalents decreased by $X million to $Y million, and its total assets decreased by $Z million to $W million. The company’s Class A Common Stock and Class B Common Stock were listed on the New York Stock Exchange under the ticker symbols PAY and PAYB, respectively. As of October 30, 2025, the company had 55,578,758 shares of Class A Common Stock and 69,849,749 shares of Class B Common Stock outstanding.
Financial Performance Overview
In the three and nine months ended September 30, 2025, the company reported strong financial results, with significant growth in revenue, contribution profit, adjusted gross profit, and adjusted EBITDA compared to the same periods in 2024.
Revenue and Profitability Trends
- Revenue increased 34.2% and 41.1% in the three and nine month periods, respectively, driven by growth in transaction volumes from both new and existing billers and financial institutions.
- Gross profit increased 23.4% in both the three and nine month periods, though gross margin declined slightly due to a shift in customer mix towards high-volume enterprise billers with lower margins. This was partially offset by improved economies of scale.
- Contribution profit, a non-GAAP metric that excludes interchange and assessment fees, grew 22.8% and 23.7% in the three and nine month periods, respectively.
- Adjusted gross profit, which excludes non-cash items like stock-based compensation, increased 22.5% and 23.3% in the three and nine month periods.
- Adjusted EBITDA, another non-GAAP measure, grew 45.9% and 45.7% in the three and nine month periods, respectively, outpacing the growth in contribution profit and adjusted gross profit due to operating leverage in the business.
Strengths and Weaknesses
Strengths:
- Consistent growth in transaction volumes and revenue from both new and existing clients
- Ability to expand margins through operating leverage, despite customer mix shifts
- Strong cash flow generation, with free cash flow increasing significantly year-over-year
Weaknesses:
- Gross margin compression due to shift towards lower-margin enterprise clients
- Increasing operating expenses, particularly in research & development and general & administrative areas
Outlook
The company appears well-positioned for continued growth, with a strong pipeline of new business and the ability to drive operating leverage. However, the shift towards lower-margin enterprise clients may continue to put pressure on gross margins going forward. The company will need to carefully manage its cost structure to maintain profitability as it scales. Overall, the financial results demonstrate the company’s resilience and ability to adapt to dynamic market conditions.